XML 33 R22.htm IDEA: XBRL DOCUMENT v3.19.2
Investments (Tables)
 6 Months Ended
Jun. 30, 2019
Investments [Abstract]  
Net investment income
The significant components of Net investment income are presented in the following table.
Periods ended June 30
Three Months
 
Six Months
(In millions)
2019
 
2018
 
2019
 
2018
Fixed maturity securities
$
455

 
$
444

 
$
910

 
$
890

Equity securities
16

 
12

 
46

 
22

Limited partnership investments
37

 
40

 
113

 
70

Mortgage loans
12

 
14

 
24

 
25

Short term investments
9

 
6

 
19

 
12

Trading portfolio
2

 
3

 
4

 
5

Other
—

 
3

 
2

 
3

Gross investment income
531

 
522

 
1,118

 
1,027

Investment expense
(16
)
 
(16
)
 
(32
)
 
(31
)
Net investment income
$
515

 
$
506

 
$
1,086

 
$
996
Net realized investment gains (losses)
Net investment gains (losses) are presented in the following table.
Periods ended June 30
Three Months
 
Six Months
(In millions)
2019
 
2018
 
2019
 
2018
Net investment gains (losses):
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
Gross gains
$
28

 
$
37

 
$
64

 
$
106

Gross losses
(31
)
 
(33
)
 
(73
)
 
(84
)
Net investment gains (losses) on fixed maturity securities
(3
)
 
4

 
(9
)
 
22

Equity securities
11

 
(10
)
 
53

 
(25
)
Derivatives
(6
)
 
4

 
(11
)
 
9

Short term investments and other
(20
)
 
1

 
(20
)
 
5

Net investment gains (losses)
$
(18
)
 
$
(1
)
 
$
13

 
$
11
Components of net other than temporary impairment losses recognized in earnings by asset type
The components of Other-than-temporary impairment (OTTI) losses recognized in earnings by asset type are presented in the following table.
Periods ended June 30
Three Months
 
Six Months
(In millions)
2019
 
2018
 
2019
 
2018
Fixed maturity securities available-for-sale:
 
 
 
 
 
 
 
Corporate and other bonds
$
6

 
$
—

 
$
12

 
$
5

Asset-backed
—

 
—

 
8

 
1

OTTI losses recognized in earnings
$
6

 
$
—

 
$
20

 
$
6
Summary of fixed maturity and equity securities
The following tables present a summary of fixed maturity securities.
June 30, 2019
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Unrealized
OTTI
Losses (Gains)
(In millions)
 
 
 
 
Fixed maturity securities available-for-sale:
 
 
 
 
 
 
 
 
 
Corporate and other bonds
$
19,654

 
$
1,880

 
$
44

 
$
21,490

 
$
—

States, municipalities and political subdivisions
9,196

 
1,507

 
—

 
10,703

 
—

Asset-backed:
 
 
 
 
 
 
 
 
 
Residential mortgage-backed
4,668

 
131

 
2

 
4,797

 
(24
)
Commercial mortgage-backed
2,032

 
93

 
4

 
2,121

 
—

Other asset-backed
1,865

 
40

 
7

 
1,898

 
(2
)
Total asset-backed
8,565

 
264

 
13

 
8,816

 
(26
)
U.S. Treasury and obligations of government-sponsored enterprises
118

 
5

 
—

 
123

 
—

Foreign government
480

 
17

 
—

 
497

 
—

Redeemable preferred stock
10

 
—

 
—

 
10

 
—

Total fixed maturity securities available-for-sale
38,023

 
3,673

 
57

 
41,639

 
$
(26
)
Total fixed maturity securities trading
—

 
—

 
—

 
—

 
 
Total fixed maturity securities
$
38,023

 
$
3,673

 
$
57

 
$
41,639

 
 
December 31, 2018
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Unrealized
OTTI
Losses (Gains)
(In millions)
 
 
 
 
Fixed maturity securities available-for-sale:
 
 
 
 
 
 
 
 
 
Corporate and other bonds
$
18,764

 
$
791

 
$
395

 
$
19,160

 
$
—

States, municipalities and political subdivisions
9,681

 
1,076

 
9

 
10,748

 
—

Asset-backed:
 
 
 
 
 
 
 
 
 
Residential mortgage-backed
4,815

 
68

 
57

 
4,826

 
(20
)
Commercial mortgage-backed
2,200

 
28

 
32

 
2,196

 
—

Other asset-backed
1,975

 
11

 
24

 
1,962

 
—

Total asset-backed
8,990

 
107

 
113

 
8,984

 
(20
)
U.S. Treasury and obligations of government-sponsored enterprises
156

 
3

 
—

 
159

 
—

Foreign government
480

 
5

 
4

 
481

 
—

Redeemable preferred stock
10

 
—

 
—

 
10

 
—

Total fixed maturity securities available-for-sale
38,081

 
1,982

 
521

 
39,542

 
$
(20
)
Total fixed maturity securities trading
4

 
—

 
—

 
4

 
 
Total fixed maturity securities
$
38,085

 
$
1,982

 
$
521

 
$
39,546

 
 
Securities in a gross unrealized loss position
The following tables present the estimated fair value and gross unrealized losses of fixed maturity securities in a gross unrealized loss position by the length of time in which the securities have continuously been in that position.
 
Less than 12 Months
 
12 Months or Longer
 
Total
June 30, 2019
Estimated
Fair Value
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
Gross
Unrealized
Losses
(In millions)
 
 
 
 
 
Fixed maturity securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Corporate and other bonds
$
776

 
$
22

 
$
498

 
$
22

 
$
1,274

 
$
44

States, municipalities and political subdivisions
19

 
—

 
2

 
—

 
21

 
—

Asset-backed:
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed
163

 
—

 
134

 
2

 
297

 
2

Commercial mortgage-backed
58

 
2

 
69

 
2

 
127

 
4

Other asset-backed
386

 
5

 
77

 
2

 
463

 
7

Total asset-backed
607

 
7

 
280

 
6

 
887

 
13

U.S. Treasury and obligations of government-sponsored enterprises
—

 
—

 
4

 
—

 
4

 
—

Foreign government
3

 
—

 
11

 
—

 
14

 
—

Total
$
1,405

 
$
29

 
$
795

 
$
28

 
$
2,200

 
$
57

 
Less than 12 Months
 
12 Months or Longer
 
Total
December 31, 2018
Estimated
Fair Value
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
Gross
Unrealized
Losses
(In millions)
 
 
 
 
 
Fixed maturity securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Corporate and other bonds
$
8,543

 
$
340

 
$
825

 
$
55

 
$
9,368

 
$
395

States, municipalities and political subdivisions
517

 
8

 
5

 
1

 
522

 
9

Asset-backed:
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed
1,932

 
23

 
1,119

 
34

 
3,051

 
57

Commercial mortgage-backed
728

 
10

 
397

 
22

 
1,125

 
32

Other asset-backed
834

 
21

 
125

 
3

 
959

 
24

Total asset-backed
3,494

 
54

 
1,641

 
59

 
5,135

 
113

U.S. Treasury and obligations of government-sponsored enterprises
21

 
—

 
19

 
—

 
40

 
—

Foreign government
114

 
2

 
124

 
2

 
238

 
4

Total
$
12,689

 
$
404

 
$
2,614

 
$
117

 
$
15,303

 
$
521
Activity related to the pretax fixed maturity credit loss component reflected within retained earnings for securities still held for which a portion of an OTTI loss was recognized in OCI
The following table presents the activity related to the pretax credit loss component reflected in Retained earnings on fixed maturity securities still held as of June 30, 2019 and 2018 for which a portion of an OTTI loss was recognized in Other comprehensive income (loss).
Periods ended June 30
Three Months
 
Six Months
(In millions)
2019
 
2018
 
2019
 
2018
Beginning balance of credit losses on fixed maturity securities
$
17

 
$
25

 
$
18

 
$
27

Reductions for securities sold during the period
(1
)
 
(4
)
 
(2
)
 
(6
)
Ending balance of credit losses on fixed maturity securities
$
16

 
$
21

 
$
16

 
$
21
Contractual maturity
The following table presents available-for-sale fixed maturity securities by contractual maturity.
 
June 30, 2019
 
December 31, 2018
(In millions)
Cost or
Amortized
Cost
 
Estimated
Fair
Value
 
Cost or
Amortized
Cost
 
Estimated
Fair
Value
Due in one year or less
$
1,018

 
$
1,032

 
$
1,350

 
$
1,359

Due after one year through five years
8,097

 
8,476

 
7,979

 
8,139

Due after five years through ten years
16,403

 
17,297

 
16,859

 
16,870

Due after ten years
12,505

 
14,834

 
11,893

 
13,174

Total
$
38,023

 
$
41,639

 
$
38,081

 
$
39,542